Investors Appear To Have Lost Their Appetite For Risk As Defensive Sectors Strengthen

Investors Appear To Have Lost Their Appetite For Risk As Defensive Sectors Strengthen

The Producer Price Index (PPI) was released before the market open on Tuesday and showed that inflation at the wholesale level grew faster-than-expected at 0. 8% in November. Additionally, the PPI grew 9. 6% from last November which is above the expected 9. 2% and is, well, just ugly. At this point, we can probably say that the transitory inflation theory has pretty much been blown out of the water. S&P 500 futures (/ES) were already trading lower before the PPI report and dropped further after the report. This selloff adds to Monday's late-day selloff adding to the degree of uncertainty investors are feeling. The Cboe Volatility Index (VIX) rose 6% before the open reflecting rising fears. Yields remain relatively flat on the news, ticking slightly higher then dropping again. Normally, we hear "buy the rumor and sell the news"; it could be interesting to see how investors react to the Fed's announcement tomorrow. Perhaps we'll see "sell the rumor and buy the news". The uncertainty is standing in the way of Apple AAPL (AAPL) making history by reaching a $3 trillion market cap. The stock fell 2% yesterday but was trading slightly higher in premarket trading. Unfortunately, the stock